You’re reading this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news. We post this and all of the newsletters on our website here.

Friends,

Cannabis stocks are rallying hard in 2024. The New Cannabis Ventures Global Cannabis Stock Index is up by 33.5% so far. Of course, a major development is playing out: rescheduling. If cannabis is moved from Schedule 1 to Schedule 3, then 280E taxation will end, which will be very good for the American cannabis companies that have been paying it.

The American cannabis companies are doing well, but they aren’t the only part of the market firing forward. The NCV American Cannabis Operator Index has gained 35.1%, only slightly higher than the Global Cannabis Stock Index.  As we discussed last week, certain Canadian LPs that are in the GCSI are doing so much better than the index and the American operators. Cannabis investors should avoid certain Canadian LPs.

While rescheduling looks like it will take place, which should be good for the MSOs due to tax reduction and improved cash flow, we remind readers that there may be some things that will not be so positive. We have a fairly large exposure to MSOs in the model portfolio at 420 Investor. but we are avoiding some of the largest ones. The five Tier 1 names are up dramatically in 2024 and over the past year, especially Trulieve:

Each of these stocks has outperformed the Global Cannabis Stock Index, up 39.2%, over the past year. A year ago, Trulieve was very out of favor. Going back to the end of 2022, it is up a lot, but it is not the leader:

Since the end of 2022, the Global Cannabis Stock Index has gained 11.5%, so these large MSOs are all up by at least twice as much. The two leaders among the five largest MSOs are both big in Florida, which is a large medical-cannabis state that is vertically-integrated. Trulieve has 136 dispensaries, while Verano operates 75. The two of them have about 1/3 of the 635 open dispensaries in the state.

Investors have been very excited by the chances of the voters in Florida approving a ballot initiative in November that would allow adult-use legalization. The Supreme Court of Florida gave the go-ahead in early April, overruling a challenge. The MSOs in the state joined Trulieve in funding support for the amendment, which will require 60% of voters approving it to pass.

In addition to Trulieve and Verano, AYR Wellness and Curaleaf are big operators in the Florida medical cannabis market, with 125 stores between the two of them. The four of these, then, have 336 dispensaries in Florida, which is 53% of all dispensaries in the state. AYR Wellness, which is up 59.2% in 2024, has gained 139.2% since the end of 2022, ahead of the five largest MSOs.

We began writing about the Florida medical market recently. The state provides an update each week with unit volumes for all of its participants. Typically, these reports are released on Friday for the week ending on Thursday. The past report, though, was late to actually hit the website. Instead of last Friday, it was published on the OMMU website on Tuesday. The report showed a new all-time low in growth of patients, which expanded just 7.3% from a year ago. When we updated the BDSA data earlier this month, we shared that Florida revenue was up only 1.8% from a year earlier in March. This was a record low too.

It’s not clear that Florida voters will approve adult-use legalization in November. If they don’t, we think the market will not be happy with a mature medical market that is slowing and competitive. If they do, it’s not yet clear that the four largest operators will win going forward. Investors should be careful in our view with the big Florida operators.

New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most important content from this week:

Exclusives

Financial Reports

AYR Wellness Q1 Revenue Flat From a Year Ago

Cresco Labs Q1 Revenue Falls 5%

To get real-time updates download our free mobile app for Android or Apple devices, like our Facebook page, or follow Alan on Twitter. Share and discover industry news with like-minded people on the largest cannabis investor and entrepreneur group on LinkedIn.

Use the suite of professionally managed NCV Cannabis Stock Indices to monitor the performance of publicly-traded cannabis companies within the day or over longer time-frames. In addition to the comprehensive Global Cannabis Stock Index, we offer the Canadian Cannabis LP Index, the American Cannabis Operator Index and the Ancillary Cannabis Index.

View the Public Cannabis Company Revenue & Income Tracker, which ranks the top revenue producing cannabis stocks.

Stay on top of some of the most important communications from public companies by viewing upcoming cannabis investor earnings conference calls.

Discover upcoming new listings with the curated Cannabis Stock IPOs and New Issues Tracker.

Sincerely,

Alan

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

The Louisiana House Health and Welfare Committee recently passed House Bill 707 in a unanimous vote to propose a regulatory framework for the state’s cannabis legalization.

The measure, which prefiled in March, doesn’t directly legalize adult-use cannabis but it does start the process of building a foundation for reform. The goal, according to Rep. Edmond Jordan who introduced the bill, is to attempt to get HB-707 passed in the legislature in 2024, followed by introducing two other bills in 2025 which would address adult-use possession and cannabis taxes.

Toward the end of a meeting on April 24, Jordan spoke about HB-707 to the House Health and Welfare Committee. “This is a very simple bill,” said Jordan. “What it does…it is for the adult use of cannabis. It sets up the retail side with dispensaries and how we would do that.”

The bill would allow adults over 21 to purchase one ounce of cannabis every day, and would also allow residents to pay $75 per year to obtain a permit to grow up to six plants at home (with a maximum of 12 plants).

Jordan projected that if adult-use cannabis sales were legal, it could potentially provide more than $1 billion in tax revenue over the next 10 years, which includes an estimated $100 million annually going into the state general fund.

Marijuana Policy Project southeast legislative manager, Kevin Caldwell, was also present to discuss the prospect of adult-use cannabis in Louisiana. According to a report created by Vicente law firm’s economic forecaster model created for Louisiana, there are currently 430,000 adult-use cannabis consumers in the state, and by 2033 the industry could be valued at $900 million. “The total regulated market between 2024-2033 would be $5.8 billion,” Caldwell stated, adding that the report believes Louisiana adult-use cannabis could be put in place by 2027, and between 2027-2023, the industry could be valued at $1.17 billion. This was based on Rep. Barbara Freiberg’s adult-use tax bill which was introduced in 2023, and included a proposal of current local and state taxes, with the addition of a 15% excise tax.

The adult-use cannabis industry fiscal impact, according to the report, would also generate $13.4 billion between 2027-2033.

The report utilized data from all 24 states with legalized adult-use cannabis. Caldwell answered numerous questions from Rep. Rhonda Butler about how the report developed the projected numbers, and the effects of crime increasing in legal states (research shows that it hasn’t led to an increase in crime), and the regulation of potency.

A total of 17 amendments for HB-707 were also adopted during the meeting, including transferring management of a cannabis program from the Louisiana Department of Agriculture and Fisheries to the Louisiana Department of Health (LDH), the removal of a cap on licenses that the LDF can issue to cultivators, processors, and manufacturers, changes a license requirement regarding stakeholder disqualification if they were guilty of or plead guilty to a cannabis-related conviction, and removing a penalty for civil violations.

One individual spoke in opposition about the bill in regard to claims about the impact of cannabis use among youth. “We don’t need to bring this scourge into our state. We just don’t,” they said.

Jordan returned to the podium to speak about the reality of cannabis in Louisiana. “Look, we’re not bringing this into the state, it’s already here. So let’s not ignore what we already have here,” Jordan explained. “The real issue is: do we want to regulate it, do we want to make it safer for our kids, do we want to make sure that we don’t have this laced with fentanyl in some grey or illegal market. I think if we bring it above ground, we regulate it, we’re able to test it, we’re able to do all these other things to make sure that it’s safe, it’s gonna make it better for our kids.”

Jordan asked that the bill be sent to the floor for further discussion, where he can present evidence that contradicts what the opposition discussed. Ultimately the committee voted 10-0 to approve HB-707.

Successful cannabis legislation has been hit or miss over the past few years in Louisiana. In April 2023, a bill to decriminalize cannabis was killed in committee before it was able to reach the House floor. In June 2023, House Bill 286 was signed by Gov. Jeff Landry, which implemented expungements for those who have previously been convicted of cannabis possession. In March 2024, the state’s 10th medical cannabis dispensary opened.

Also recently in March 2024, Louisiana police reported that rats had infiltrated confiscated cannabis and were eating all of the flower. AP News spoke with a police superintendent who said that the “uncleanliness is off the charts,” at that particular building, and it’s not the janitorial staff’s fault.

An Arizona church has reached a settlement in a lawsuit against the U.S. Drug Enforcement Administration and other federal agencies that allows the Indigenous religious organization to use the psychedelic brew ayahuasca for sacramental purposes. Under the agreement, the Church of the Eagle and the Condor (CEC) will be permitted to import, prepare and distribute ayahuasca to its members at religious ceremonies.

“The Church of the Eagle and the Condor has reached a settlement to secure its religious freedom and the right to use Ayahuasca as its sacrament,” the church wrote in an announcement of the settlement. “This is the first Indigenous-based church to receive recognition and protection.”

In 2022, the CEC filed a lawsuit against the U.S. Department of Justice, the Department of Homeland Security (DHS), Customs and Border Protection and the DEA after DHS officials seized shipments of ayahuasca intended for sacramental use by church members. The lawsuit also cited government threats that the church and its members could face prosecution under federal drug charges if they continued to import ayahuasca, which contains the psychedelic drug and Schedule I controlled substance DMT (N, N-Dimethyltryptamine).

The settlement allows the CEC and its members to obtain and use ayahuasca in paste or liquid form under an exemption to the Controlled Substances Act. The concentrate will then be diluted with water into a ceremonial tea by church members for religious ceremonial purposes held in Phoenix. The settlement permits the DEA to take samples of imported shipments to confirm they contain ayahuasca and no controlled substances other than DMT. 

“This Agreement permits CEC to import, receive, manufacture, distribute, transport, securely store, and dispose of ayahuasca solely for CEC’s religious purposes,” the settlement reads. “CEC may not conduct any of these activities for non-religious purposes, including but not limited to recreational purposes. CEC may not use any DEA registrations subject to this Agreement to import, receive, manufacture, distribute, store, or use any other controlled substance.”

Ayahuasca is used in South America by Indigenous cultures and folk healers in spiritual and religious ceremonies. In recent years, the psychoactive brew has gained popularity with American celebrities including Aaron Rodgers, Will Smith, Miley Cyrus and others, who have used ayahuasca to take advantage of its purported mental health benefits.

CEC Ayahuasquero (sacramental practitioner) Joseph Tafur, M.D. said in a statement that the ceremonial use of ayahuasca “is an essential sacrament for our church.”

“Our ceremony is rooted in the Shipibo Amazonian tradition which has been passed down by countless generations,” he said. “Now, in fulfillment of the ancient Prophecy of the Eagle and the Condor, this tradition has come to North America.” 

“I am honored to be an Ayahuasquero with the CEC, and bring to our ceremony the care, respect, and reverence that it deserves,” Tafur continued, adding, “Our ancestral practice will continue to support the community and nourish our holistic well-being.” 

Belinda P. Eriacho, a CEC board member of Diné and A:shwii lineages, said that the settlement with the DEA “reaffirms our right to practice our spirituality as we have always known. It is a recognition by the U.S. government and an important milestone in honoring and validating indigenous belief systems. Prior to contact, indigenous peoples have used sacred plant medicines for healing and ceremony since time immemorial.”

“Our relationship with our plant relatives has always been an extension of our worldview. This has been interrupted by the imposition of governmental policies that have suppressed our way of life and demonstrated religious intolerance,” Eriacho continued. “This settlement is a significant step and acknowledgment of our spiritual beliefs as original peoples of the Americas.” 

In an announcement last week, Governor Kathy Hochul announced that the state of New York reached a significant milestone: the grand opening of the state’s 100th Conditional Adult-Use Retail Dispensary (CAURD) brick-and-mortar store. 

Big Gas is located in the village of New Paltz, located near Poughkeepsie. The Office of Cannabis Management (OCM) and a handful of state leaders joined Big Gas owners, Kareem Haynesworth and Zymia Lewis for the grand opening of the store for public sales. “Big Gas is proud to be the first licensed cannabis dispensary in the City of New Paltz,” Big Gas Owners Zymia Lewis and Kareem Haynsworth said. “We are here with the support of the New York State Cannabis Investment Fund, who led us to this great location. This is beyond our wildest dreams.”

“We are pleased to be a host community in NYS’s Conditional Adult Use Retail Dispensary program,” said Village of New Paltz Mayor Tim Roger. “This initiative has allowed the state to 1) invest in a private fund to support individuals impacted by the inequitable enforcement of cannabis law and 2) protect public safety with NYS-sourced, regulated, and tested cannabis.”

Hochul applauded this historic milestone for New York’s cannabis industry.

“New York State continues to make progress on standing up a safe and legal cannabis industry for business owners, farmers and residents across the state,” Governor Hochul said. “Today marks a historic milestone in establishing a thriving and equitable industry in our state with the 100th brick-and-mortar store opening.”

New York officials licensed 110 adult-use cannabis retailers including storefronts and temporary delivery-only (TDO) locations across the state, with more anticipated to open soon. It’s a mix of CAURD licensees with storefronts, CAURD licensees providing delivery services, and adult-use dispensaries co-located with existing medical dispensaries. 

New York industry is taking off, reflected by the rapidly growing number of retailers and sales, with total sales exceeding $237 million, $77 million of which was generated in the first two and a half months of 2024. It’s all the signs of a thriving market. The rollout of New York’s cannabis program, however, was hammered by delays caused by lawsuits and the prevalence of illegal cannabis retailers. One such delay was a lawsuit led by Leafly that challenged New York’s ban on third party advertisers for cannabis businesses.

New York places emphasis on social equity measures to ensure that the state’s industry includes communities impacted the most by the criminalization of cannabis.

Despite setbacks, state leaders have been optimistic. Within its first year of operation, New York achieved and surpassed the Social and Economic Equity (SEE) goal laid out in the adult-use law with 60% of licenses given to social and economic equity applicants. Forty percent of social equity licenses are minority-owned businesses and 40% are women-owned businesses, respectively.

The governor’s announcement stated that this also almost doubled the percentage of majority minority-owned cannabis retailers nationwide. As of April 2024, 37% of New York’s adult-use retailers are majority minority-owned as only 19% are majority minority-owned nationwide. 

In addition, 11% of New York’s adult-use retailers were majority Black-owned, while nationally, that number is at just 2%. Approximately 50% of New York’s open dispensaries are minority- and/or women-owned businesses.

Office of Cannabis Management Executive Director Chris Alexander said, “We are incredibly proud of our licensees across New York State who have worked diligently to cross this threshold. Today’s celebration at Big Gas belongs not only to the team who opened their doors to business to eager customers today, but to every single licensee who is building this market from seed to sale. It echoes our commitment to catalyzing growth, fostering diversity, and championing equity within the cannabis sector. This milestone embodies our tireless endeavors to reshape the industry landscape and underscores our resolve to push the boundaries of progress. Supported by the New York Cannabis Social Equity Investment Fund, we take pride in our progress and pledge to persist in our pursuit of inclusivity and advancement of New York’s Cannabis Market.”

“We take great pride in being able to support individuals who have been affected by unjust enforcement of cannabis laws and help them thrive in this emerging industry,” said Social Equity Impact Ventures LLC General Principal of the Fund’s General Partner Lavetta Willis. “Access levels the playing field. We are thrilled for Zymia Lewis and Kareem Haynesworth and wish them great success. We express our heartfelt gratitude to Governor Hochul for leading the way and paving the path to a socially equitable sector that promotes inclusivity and equal opportunities for all.”

Hundreds more retail operations dot the state as licensed businesses compete with the black market.

Employees at one of the country’s largest cannabis companies have reportedly fled their union amid a dispute over wages and dues.

The outlet MJBizDaily reports that workers at one of Cresco Labs’ cannabis cultivation facilities in Massachusetts “voted to de-unionize earlier this month,” which it said was “believed to be the first instance in the U.S. of a regulated cannabis workplace exiting organized labor.”

The move comes after workers at the facility in Fall River, Massachusetts “had joined the United Food and Commercial Workers (UFCW) Local 328 in November 2020,” according to MJBizDaily.

“Their first contract was set to expire in June. But rather than negotiate a new deal, the workers elected to ditch the UFCW entirely, Cresco employee Wyatt Brissette told MJBizDaily,” the outlet reported on Tuesday. “Sore points among the formerly unionized workers included scheduled wage increases that didn’t keep up with inflation and ‘arguably worse benefits’ than what nonunion workers received, he said.”

“We felt as if (the union) didn’t match what we needed,” Brissette told the outlet. “We were pretty much paying them for nothing.”

Another outlet, The Dales Report, reported that the exit from the union was “driven by employee dissatisfaction with union dues.”

“The Cresco Labs union situation underscores a significant challenge in unionized sectors, especially in emerging industries like cannabis. Although it is widely believed that unionization protects workers’ rights and ensures fair treatment, the recent events at the company reveal a gap between union efforts and member expectations. This situation sheds light on the complexities of union dynamics in newer, rapidly changing markets,” the outlet said. 

“Cresco Labs’ employees’ decision to leave their union is not isolated but reflects broader sentiments about the effectiveness and utility of such organizations in certain sectors. As the company continues to grow, the impact of this union departure could influence union strategies and employee relations in similar companies. The Cresco Labs issue may lead to a reassessment of union strategies across the industry. Unions might need to adapt more flexibly to the unique challenges and expectations of workers in non-traditional fields like cannabis cultivation. For Cresco Labs, this change could also prompt updates in their human resource policies and employee engagement strategies to more directly address worker concerns without employee mediation.”

According to the company’s official website, Cresco Labs is “one of the largest publicly traded, vertically integrated, multistate cannabis companies in the U.S.” Its stock was trading at below $2 a share on Wednesday, although it is up more than 46 percent year-to-date.

Last year, Cresco Labs called off a planned $2 billion merger with Columbia Care, a deal that would have created the largest cannabis company in the United States.

“In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction is in the long-term interest of Cresco Labs and our shareholders. We want to express our sincere gratitude to Columbia Care for their valuable collaboration and dedication during this transaction,” Charles Bachtell, CEO and co-founder of Cresco Labs, in a statement at the time.

“Moving forward, we remain committed to our Year of the Core strategy, which involves the swift restructuring of low-margin operations, improving competitiveness and driving efficiencies in markets where we maintain leading market share, and scaling operations to prepare for growth catalysts in emerging markets. A strong core will enable us to take advantage of the margin accretive, growth opportunities we foresee within this tough economic time for the cannabis industry. While this is not the outcome we originally hoped for, we are confident Cresco Labs is in a stronger position moving forward.”

Nicholas Vita, CEO and co-founder of Columbia Care, said that, “after careful consideration,” his company was “confident in the mutual decision to move forward as separate, standalone companies.” 

“This is the best path forward for Columbia Care’s employees, customers, and shareholders. We are thankful for the collaboration and partnership with the Cresco team throughout this extensive process,” said Vita. “Over the last 16 months we have reviewed every aspect of our business, remained decisive and have made substantive changes that significantly improved our operations — positioning us with significant strategic and operational strength at this inflection point in the company’s history. We are looking forward to realizing the benefits of these changes as well as focusing on the opportunities in our outstanding footprint in markets with embedded upside; diversified portfolio of brands; our award-winning national retail brand, The Cannabist; recently implemented operational and organizational efficiencies; proactive balance sheet management activities; and meaningful equity capital markets initiatives that will propel Columbia Care into one of the most profitable and resilient companies in the industry over the next several years.”

The companies also used the announcement to provide an “additional update”: “the definitive agreements dated November 4, 2022, to divest certain New York, Illinois and Massachusetts assets of Cresco and Columbia Care to an entity owned and controlled by Sean “Diddy” Combs have also been terminated, effective July 28, 2023.”

A Maine man was arrested and held without bail last week for allegedly operating an unlicensed cannabis operation in a rural area about 60 miles north of Bangor, according to law enforcement officials and court records. Police seized 40 pounds of processed marijuana from a house in Passadumkeag, Maine and arrested Xisen Guo, who is accused of drug trafficking and turning the property into a sophisticated cannabis cultivation operation. 

Maine legalized recreational marijuana in 2016 with the passage of a ballot measure that also established a regulated market for adult-use cannabis. The Maine Office of Cannabis Policy said that Guo has not been licensed to cultivate marijuana and was operating the site illegally, court records show.

Guo was ordered held without bail on the federal charges on Friday, making him the first person in Maine to face such accusations. Two other individuals who were at the site when it was raided in February were released without charges being filed against them.

The grow site was raided after deputies reviewed electricity bills for the property and identified a significant increase in electricity usage. After the rural home was purchased for $125,000 cash, the electricity bill went from about $300 per month to almost $9,000 per month. Investigators said the electricity usage is consistent with the lights, HVAC equipment and other apparatus used in sophisticated cultivation operations.

Federal Investigation Encompasses 20 States

The arrest of the suspect, a naturalized U.S. citizen who was born in China, comes in the midst of a federal investigation spanning several years and 20 states into illegal pot grows being operated by foreign interests. In 2018, police arrested a Seattle woman and seized thousands of weed plants during an investigation of cultivation sites linked to China. In Oklahoma, law enforcement officials determined that groups from Mexico and China started growing pot in the state after medical marijuana was legalized in 2018. Instead of remaining in Oklahoma for use by registered patients, however, the weed was diverted to states where it is still illegal.

Last week, U.S. Attorney General Merrick Garland told the Senate Appropriations Committee in response to a question from Republican Senator Susan Collins of Maine that the Drug Enforcement Administration is investigating international criminal groups that are operating illicit cannabis cultivation operations in about 20 states including Maine. 

In February, a bipartisan group of 50 lawmakers including Collins wrote a letter to the attorney general asking him to answer questions about reports that China may be connected to illegal marijuana cultivation operations in the United States.

“We are deeply concerned with reports from across the country regarding Chinese nationals and organized crime cultivating marijuana on United States farmland,” the lawmakers wrote in the letter, CBS News reported over the weekend.

100 Illicit Grow Sites in Maine

In Maine, the Internal Revenue Service, the Department of Homeland Security, the FBI, DEA and local law enforcement are working together to investigate unlicensed cannabis cultivation operations, Garland told lawmakers. Federal officials say that there are currently about 100 illicit pot grow sites in Maine similar to the one in Passadumkeag. Since June, approximately 40 search warrants have been issued for unlicensed cultivation operations in the state.

U.S. Attorney for the District of Maine Darcie McElwee said that dismantling unlicensed cannabis operations with connections to international crime groups is a priority for law enforcement “and we will continue to marshal every tool at our disposal in this effort as appropriate.”

So far, state and local police and federal law enforcement agencies including the DEA and FBI are beginning to see success at dismantling illicit cultivation sites, she said, with “dozens of operations” shut down over recent months.

“The possible involvement of foreign nationals using Maine properties to profit from unlicensed marijuana operations and interstate distributions makes it clear that there is a need for a strong and sustained federal, state and local effort to shut down these operations,” McElwee said, according to a report from the Portland Press Herald.

Raymond Donovan, the former chief of operations for the DEA, told CBS News earlier this month that unusually high electricity bills are one of the easiest ways to identify an illegal cannabis cultivation operation.

“These locations consume huge amounts of electricity,” he said. “In order to accommodate that amount of energy, you need to upgrade your electrical infrastructure — and significantly. We’re getting into specialty electrical equipment that is very scarce and hard to come by, especially in the state of Maine.” 

Another illicit grow site in Machias, Maine was raided in December after police noticed unusual electricity usage. After the raid, which yielded 2,600 plants and about 100 pounds of processed and packaged cannabis, Machias Police Chief Keith Mercier said that the cultivation site was using about four or five times as much electricity as a typical residence would.

“Once we subpoenaed the power records from the power company, [it] was pretty hard to explain why somebody anywhere would be using that amount of power,” he told CBS News.

Although the official city-sanctioned 4/20 celebration on Hippie Hill in San Francisco was canceled this year, it still attracted thousands of people to gather on the holiday.

According to a report from SFGate, whose representatives spoke with some of the attendees, the cancellation didn’t hinder anyone’s plans. Jessica Leung told SFGate that she was excited to be there and surprised by the amount of people who still showed up. “4/20 is my favorite holiday,” Leung said.

The lower part of the hill was roped off with chains to host a “Peace, Love and Volo Field Day,” free event, inviting people to play cornhole, kickball, and volleyball. The upper part of the hill was deemed the “spectator area” for fans to chill on the lawn in the sun. Other vendors attended as well, selling art portraits and various other goods. Food trucks were also in attendance, which led to long lines.

Past city-sanctioned 4/20 celebrations at Hippie Hill included on-site portable toilets, medical support, and an increase in hired staff. Even though the official event was canceled, the city was still able to provide portable restrooms and San Francisco Recreation and Parks staff to patrol the area.

Some attendees commented on the people’s drive to celebrate. One longtime 4/20 celebrator, Chandra Edelstein, said that there was more freedom at this year’s event now that it had less city restrictions. “I expected it to be packed,” said Edelstein. “People still flock here and the energy is amazing.”

Another visitor, Alex Diaz, added that they planned to be there regardless of city involvement. “We’re out here to have a good time, and not expecting anything,” Diaz said.

Attendee Dalano Rhyne said that she prefers this year’s “scaled-down” version of the event. “I’m here I’m doing my own thing … so I’m having a good day and this was blank when I got here, so that’s a great day,” Rhyne said as she put together a cardboard art installation featuring signatures and drawings from other attendees.

Steve Banuelos and his group of longtime friends said they were hesitant to attend after the event cancellation, but decided to go anyway because “it may turn out to be something.” “Well, we’re all retired now, so what the hell else are we going to do with our time?” Banuelos said.

The 2023 Hippie Hill event was a massive gathering, which featured Erykah Badu as grand marshal and instructed attendees to “Put your weed in the air” at 4:20pm. “For a lot of us, this is our medicine,” Badu said. “This shit is here to take you to a higher place.”

Last year’s event also featured a “King of Z Hill” competition pitting growers against each other for the title of best weed and best concentrates. “Some of the most exotic flavors in the world come out of the West Coast right here in San Francisco,” said King of Z Hill organizer, Brandon Parker.

One competitor, SoCal Dank’s Joe Evans, explained that competitions like King of Z Hill aren’t about winning, but networking with others. This certainly attests to the evolution of the cannabis industry over the years, and the stark differences between the 2023 and 2024 Hippie Hill events.

This year’s Hippie Hill event cancellation was announced on March 25, citing city budget cuts and a lack of sponsors. However, the organizers did confirm that the sponsored event should be returning in 2025.

The cancellation paved the way for other celebratory events to take the spotlight. SF Weed Week held its inaugural event, celebrating 4/20 in a variety of ways through the week leading up to 4/20. SF Weed Week founding advisor, Ben Grambergu, explained the importance of spotlighting local growers. “The organizers of Hippie Hill deserved a break, and SF Weed Week is here to extend the celebration across the entire city with the best cultivators in the world sharing their gift with the most dedicated enthusiasts in the world,” said Grambergu. “Look, the Bay Area has and always will be an epicenter of cannabis culture. SF Weed Week is proving to the doom loop haters that the scene is thriving. With a week full of incredible activations, world-class cannabis, and meet and greets with the rockstars who produced it; this event has something for everyone.”

The San Francisco Museum of Modern Art recently put up a new display at its gift shop to sell ceramic bongs. Each of the pieces are part of a collection called Weed’d, which are beautiful display-worthy items ranging between $50-$195. According to museum store buyer Camille Verboort, they chose this selection of bongs because they offered “sculptural quality and bold primary colors.”

Verboort added that since the museum features alcohol-related items, it’s time for them to also feature cannabis-related items as well. “We currently sell bar items quite well and, this being San Francisco, thought we could make room for cannabis accessories if we found designs that made sense for us,” Verboort said.

Weed’d is created by Italian designers who sought to “challenge the traditional narrative” and stigma often associated with bongs. One designer, Maddalena Casadei, shared that she had never used a bong before, which allowed her to experiment with the design process. ‘“The round shapes go along with the softness of the experience of using it. It is in fact designed to give pleasure through touch as well,” Casadei said.

Illinois Governor J.B. Pritzker took to the campaign trail over the weekend to stump for President Joseph Biden, taking advantage of the 420 weed high holiday as an opportunity to tout the cannabis policy reforms made by the current administration. At a campaign stop in Grand Rapids, Michigan on Saturday, Pritzker said that cannabis policy reform can have significant economic benefits in states that legalize marijuana for adults.

“I wanted to come up here on 4/20, because we, too, legalized cannabis in the state of Illinois, and I know that’s been a boon to not only state revenues but also to business and job creation in the state of Michigan,” said Pritzker, according to a report from Michigan Advance.

“To be blunt: we’re proud to have sparked a new industry when we legalized adult-use cannabis,” the governor added on X in a 420 tweet.

Joined by Michigan Democratic state Majority Leader Winnie Brinks, Pritzker said that legalizing marijuana in Michigan was just one of many Democratic victories in the state since 2018.

“You all have turned a state that was — let’s face it, a red state — into a purple state, and now a blue state,” Pritzker told the crowd. “There are so many other states in the country that should be following Michigan’s lead.”

The Illinois governor added that the progress made in Michigan did not come easy, encouraging the public to volunteer for the campaign and canvass voters to get out the Democratic message.

“It’s like the eighth-grade dance, for me, anyway. Sometimes you have to knock on three or four doors before you get somebody you can really talk to,” Pritzker said. “Because you’re willing to do that, you’re going to have somebody to dance with. You’re going to bring them to the dance.”

Biden Administration Reviewing Federal Weed Policy

In 2022, Biden issued an executive order pardoning thousands of low-level marijuana convictions and directed his administration to review the federal prohibition of cannabis. In August 2023, Department of Health and Human Services (HHS) Assistant Secretary for Health Rachel Levine called on the Drug Enforcement Administration to change the classification of marijuana from Schedule I to Schedule III of the Controlled Substances Act. Under the 1970 legislation, the Schedule I classification indicates that a drug has no accepted medical value and a high propensity for abuse. Other drugs currently listed under Schedule I include heroin and LSD.

In January, the Department of Health and Human Services determined that marijuana is eligible for the less strict classification under federal drug laws, according to agency documents. As part of the review, researchers with the U.S. Food and Drug Administration (FDA) determined that credible evidence shows that marijuana has legitimate medical uses and fits the criteria for rescheduling under the Controlled Substances Act.

At his Grand Rapids campaign stop, Pritzker noted that Biden is also busy supporting his bid for reelection against former president and presumptive Republican nominee Donald Trump. The president spent much of last week campaigning in the battleground state of Pennsylvania and will be making additional stops to help secure the “blue wall” of Michigan, Wisconsin and Pennsylvania, three states that voted for Trump in 2016 but then switched to Biden four years later.

“Democrats need to win the blue wall states. It’s vitally important, and Joe Biden knows it,” Pritzker said. “One of the reasons we’re having the Democratic National Convention here in the Midwest is because he recognizes how important this is.”

“Michigan sits in the middle,” he added. “If we don’t win Michigan, we can’t win the presidency. And if we don’t win Michigan, this country is going to go backwards.” 

Pritzker referred to criticisms that both frontrunners are too old to be elected, arguing that Biden’s experience and character are attributes that will help him in office while suggesting that Trump is uncaring.

“People sometimes say Joe Biden’s old. But Donald Trump has proven that you can be old and not learn anything,” said Pritzker. “You can be old without having learned, throughout the course of your life, empathy for people across the United States. And that is Joe Biden; he wears empathy on his sleeve.”

Pritzker acknowledged that last week, independent presidential candidate Robert F. Kennedy won his bid to be added to the Michigan ballot for the general election in November. But the governor said he was not concerned that Kennedy would be a spoiler candidate that takes votes away from the current president.

“There’s only one candidate on the ballot who can win and beat Donald Trump, and that’s Joe Biden,” Pritzker said. “I don’t think having ballot access for Robert Kennedy is going to change the fact that people are going to go into the voting booths and know that they’re throwing away their vote if they vote Robert Kennedy, and that if they vote for Joe Biden they’re assuring that we’re not going to have Donald Trump as president.”

Pritzker continued his support for the president’s reelection campaign on Sunday, leaning into his belief that Kennedy’s candidacy would not hurt Biden.

“Robert F. Kennedy Jr. being on the ballot in Michigan, I think is going to have a little effect on the ultimate result,” Pritzker said on CNN’s “State of the Union,” according to a report from The Hill. “People understand that there are really only two candidates that have a path to victory in this country and in Michigan. And, of course, that’s Joe Biden and Donald Trump.”

Both major political parties have yet to make their choice for president official. The GOP will meet at the Republican Convention being held in Milwaukee in July to nominate the party’s candidate for president, while Democrats will choose their nominee at the Democratic National Convention in Chicago in August.

There’s another attack on the First Amendment for you to worry about, especially if you live in Colorado. The Centennial State’s Senate approved an epically terrifying social media bill that could require social media platforms to prohibit users from saying anything deemed positive about controlled substances online, including psychedelics legal in the state, specific hemp products, and even some over-the-counter cough syrups.

The bill, officially named SB24-158, is a comprehensive measure that addresses internet age verification and content regulations, mandating that social media platforms promptly delete any user “who promotes, sells, or advertises an illicit substance.”

Originally, the bill would have also applied to cannabis, which is, of course, legal in Colorado. Adults 21 and older can possess up to one ounce of marijuana and grow up to six plants privately. Thankfully, that got scrapped, thanks to an amendment last month from the bill’s sponsor, Sen. Chris Hansen (D), who made sure it includes language noting that “a social media platform may allow a user to promote, sell, or advertise medical marijuana or retail marijuana to users who are at least twenty-one years of age” if the content that the user is posting is in line with state cannabis laws. So, while IGing your legal weed should be fine, be careful about posting anything purchased on the black market or potentially grown illicitly. The Senate, with four members excused, voted 30-1 on Wednesday to pass the revised measure during its third reading.

However, there’s still plenty to be angry over. The revised bill would continue to cover a wide range of both legal and illegal substances. Despite the amendment concerning cannabis, the bill could still pose significant threats for users who attempt to share harmless and legal content about substances as available as cough medicine. 

“The updated version would still prevent users from from promoting NyQuil or anti-anxiety medications among many others, even though it exempts marijuana,” R Street Institute Fellow Shoshana Weismann, told Marijuana Moment last month. “And if you promote those medications, you will be reported to law enforcement. That is asinine.”

Because this isn’t just a rule a private company is creating. It’s the government. 

And as amended, the bill maintains that its reach pertains to certain hemp products, such as those containing over 1.25 milligrams of THC or any with a CBD-to-THC ratio under 20:1. It also includes most other hemp-based products meant for human consumption, so basically anything except for those categorized as dietary supplements, foods, food additives, or herbs.

The state’s psychedelic advocates are concerned. It pits Colorado’s legal drug laws up against government overreach. As Marijuana Moment reports, Kevin Matthews, the director of the campaign in Denver that successfully made the city the first in the U.S. to decriminalize psilocybin, said on Facebook after Wednesday’s vote that the SB24-158 would “make it nearly impossible to even simply talk about plant and fungi medicine on any social media network without state monitoring.” Of course, this not only is worrisome for those who like to post photos of their beautiful fungi, but puts information about safe and responsible usage at risk. Once again, an attempt to regulate and restrict will end up making substances that would usually be very safe and beneficial more dangerous than if people were just let be. 

The measure’s language “severely handicaps the emergent psychedelic ecosystem at all levels to educate the public,” Matthews wrote, “and gives broad powers to a state apparatus to take legal action against individuals for expressing their opinion online.”

Under the proposed legislation, social media companies would need to revise their policies and make them publicly available by July 1, 2025. Any changes to these policies must be posted online within 14 days after they are implemented. The companies would be obligated to annually provide the state attorney general with reports confirming whether their published policies include definitions and provisions related to illicit substances, as per a legislative summary given to a Senate committee. The bill requires companies to keep “all data and metadata related to users’ identities and activities” for one year, which puts users at risk of hackers coming in and stealing such data. 

While the First Amendment is obviously a concern, informed critics warn that the bill infringes on the Fourth Amendment as well, which is meant to protect Americans from unreasonable search and seizures by the government. 

Entertainment hosts in Las Vegas are noticing a significant decrease in Gen Z (those born between 1997-2012) drinking alcohol. Paired with an overall increase in cannabis use by younger consumers, this shift could lead to great success for consumption lounges.

Las Vegas-based promoter of Pulsar Presents, Patrick Trout, has 20 years of experience promoting local music. Trout recently spoke with Las Vegas Weekly about the trend of Gen Z drinking less alcohol. “It’s something I’ve observed since the shutdown ended, but especially in the last year,” Trout said. “I’ve seen a dramatic increase in people not drinking at shows or drinking non-alcoholic stuff, but then simultaneously also wanting to smoke more. We are really seeing a generational, cultural shift.”

Trout’s observation is also reflected in a 2023 Billboard article, which cited a shift in alcohol consumption when businesses reopened after the pandemic. One Tucson, Arizona-based club manager noted that especially with shows that catered to Gen Z, alcohol sales dropped by 25%. Some researchers believe that this is partially because people pre-game, or start drinking alcohol prior to their arrival at a bar or entertainment venue, which is also a way to save money on a night out. Venue owners have attempted to switch their strategies to appeal to Gen Z attendees, such as expanding their non-alcohol options. In 2019, Global Market projected that the non-alcoholic industry could reach a value of $30 billion by next year.

Psychiatrist Akhil Anand, MD, told Cleveland Clinic that an increase in mental health awareness deters Gen Z from imbibing. “Alcohol is a depressant and never the answer to a bad day,” Anand said. “Gen Z seems to understand that concept and they’ve moved in a different direction.”

A New Frontier Data report from 2022 shows that 69% of people between 18-24 prefer cannabis over alcohol, while the same preference is seen with 70% of those 25-34, 68% of 35-44 year olds, 55% of people 45-54, 52% of 55-64, and 44% of those 65-74.

Christopher LaPorte, Vegas-based manager of Reset, a cannabis hospitality group, told Las Vegas Weekly that cannabis is becoming highly preferred over alcohol. “Everyone has the pot brownie story that was horrible. But everyone also has a lot more of ‘Oh my god, that one night with tequila,’” said LaPorte. “People are more educated now because we are out of the closet. More people know about cannabis. More cool people are very open about their cannabis-smoking habits.”

Nevada’s first consumption lounge, Smoke and Mirrors, which is owned by Thrive Cannabis, opened in late February. LaPorte helped design the consumption lounge, which made him think of listening cafes in Japan and New York, some of which only offer non-alcoholic drink menus. “There was this buzz, I would say three years ago, about this new culture of non-alcoholic spirits, and we saw that there were bars actually dedicated to that. It wasn’t just an Alcoholics Anonymous kind of center. We [thought] this might be something,” said LaPorte. “We saw a lot of products like Lyre’s and Seedlip … they were starting to percolate. And, again, it was like, how can we tie this into a cannabis lounge?’”

That thought culminated into Smoke and Mirrors’ non-alcoholic, THC-infused drinks, which LaPorte described as a way to “attract another market into the cannabis space.”

Las Vegas Weekly was given a tour of Planet 13’s new cannabis lounge, led by Frankie Anobile, who has had an extended career as a DJ and developing Vegas nightlife entertainment, but is now Planet 13’s entertainment director. While he explained that he doesn’t expect “bong service” to replace “bottle service,” he stated that offering both services is the best way to go.

Planet 13’s consumption lounge, Dazed!, opened on April 5, but the company is also planning on building a three-story, 60,000 square-foot nightclub that only serves alcohol sometime in 2025.

While Nevada state law prevents cannabis businesses from selling alcohol, and vice versa, Planet 13’s nightclub plan would allow club goers to walk next door to the club after the consumption lounge closes. “You can stay all night drinking for hours; you can’t stay all night smoking. It’s a totally different culture, from what they want musically to what their stay time is,” said Anobile. “A lot of these people don’t usually like to leave their house. They’re not the ones who want to spend an hour getting ready to go out there and be seen like they’re doing an Instagram post.”

Trout added that he’s excited to see how consumption lounges will alter the music scene. “One thing I’m really interested to see with the pot lounges that decide to utilize live music is seeing what the spread is, what genres they go after,” Trout said. “There’s some sub genres of metal like doom and stoner rock and desert rock where I think it would absolutely appeal to them to have a place like that where you can smoke and watch music.”

According to the Nevada Independent, there are 38 more cannabis consumption lounge license holders currently working on their businesses at various stages.